NIFTY closes at 5907.50, down 83.00 Points - Indsec Securities & Finance

The Nifty closed the day negative down 83.00 (1.39%) points at 5907.50 from 5990.50 Wednesday, on the back of very good volumes. Nifty and stocks rollover to next expiry is at 76% and 80% respectively. Major loser in Nifty were Ambuja Cements (-10.56%), JP Associates (-8.99%) and ITC (-4.50%) whereas major gainers were Hero Motocorp (+4.20%), Asian Paints (+1.89%) and Tata Motors (+0.87%).

The volume in the cash market for both NSE and BSE put together was up 22.00% to Rs. 163.70 bn from Rs. 134.20 bn. The advance/decline ratio stood at 0.49:1 from 0.33:1 for stocks traded on NSE.

Nifty on the hourly chart opened negative on account of global cues coupled with high cut off in Gsec yield for auction of TBs. Nifty took support at 38.2% retracement of swing High/Low 6093/5566 and close just above it. The RSI(14) touched the lower range of bearish band and closed below it. Thereby indicating oversold on the over chart. We will see further sell pressure before positive divergence is formed on the hourly RSI(14) chart.

Nifty on the daily chart is forming CD leg of butterfly/deep crab pattern which will be confirmed once market closes negative tomorrow. The RSI(14) breached the 50 level to close below it, which will act as resistance for market to move up from current levels.

Source : Equity Bulls

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